Research on the neural processing of reward and punishment thus far has indicated the complex and constant role it plays in decision making and behaviour. Current findings suggest that an action...Show moreResearch on the neural processing of reward and punishment thus far has indicated the complex and constant role it plays in decision making and behaviour. Current findings suggest that an action can be incentivised by the desire to avoid punishment as well to gain reward. A means of gauging how effective a financial incentive is to motivate behaviour is via the neural response it elicits using EEG data. This study uses the Monetary Incentive Delay task (MIDt) to examine financial incentive-driven behavior. Due to loss aversion, we expected a greater neural response (feedback related negatively; FRN), in punishing conditions where money is lost compared to reward or control where it is not. We investigate how reward and punishment sensitivity of the participant could moderate this relationship between FRN and the type of incentive, assuming that higher punishment sensitivity will predict an increased FRN amplitude generated in the punishment compared to reward conditions. This thesis is a preliminary analysis, involving university students with no substance abuse or problematic gambling histories (N = 21) that complete the MIDt while EEG was being recorded. The short Sensitivity to Punishment and Sensitivity to Reward Questionnaire was administered pre-experiment and all money earned during the MIDt was awarded to the participants upon completion. Data was analyzed using repeated measures ANOVA, with contrasts as follows: control vs gain; control vs loss; gain vs loss. A moderation analysis was run of punishment/reward sensitivity (SP/SR) on gain versus loss with FRN amplitude as outcome using PROCESS in SPSS. Data is still being obtained at this point in time to achieve necessary power for this study. This is potentially why our preliminary results were non-significant for our hypotheses. However, the trends shown in the FRN absolute values indicate a greater neural response in punishment conditions where money is lost compared to either the reward or neutral counterparts. Additional analysis is required to fully ascertain how punishment and reward sensitivity impact the neural correlates of financial incentives and how this finding can be applied when using such incentives practically.Show less